When analysts, dealers and investors are subject to information overload, how can they realistically isolate and interpret the relevant market signals needed to build a coherent financial strategy?

Given the reality of increased market volatility it is increasingly important to understand which are the most influential economic and psychological indicators and how, in turn, they impact on the prices of financial assets.

What Drives Financial Markets contains an accessible set of rules by which financial analysts, dealers and investors can observe and respond to new economic indicators. This book illustrates the interaction between fiscal, psychological, political and economic factors that drives financial markets, highlighting the key role of market sentiment. Emphasis is placed on interpreting relevant signals in order to be ale to act swiftly and profitably.

The book defines the four criteria on which to judge the value of an indicator: relevance, timely release, availability and stability. It also gives clear analysis of how the business cycle affects financial markets, as well as discussing the influence exerted by such institutions as the US Federal Reserve. Readers will understand and analyze the driving forces and impact of economic changes, identify long-term trends as opposed to short term volatility, and make appropriate investment decisions.